FILL OUT THE FORM BELOW AND RECEIVE A NO-OBLIGATION CONSULTATION

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If you have unsecured debt of under $10,000 and live in the Province of Ontario filing bankruptcy may not be the best option for you. We suggest you contact the Office of the Superintendent of Bankruptcy at 416-973-6441 to discuss your options, or you can visit their website here.

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Using money to buy essentials prior to Bankruptcy

Can I use the savings that I have to prepay the rent , buy groceries in bulk or prepay for essential services like telephone prior to bankruptcy? I have a kid and my wife cannot work due to illness. My income is far less than the bankruptcy exemption and is not sufficient to pay day to day expenses , I have been relying on savings to bridge the gap.

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One Response to “Using money to buy essentials prior to Bankruptcy”

A licensed trustee said...

The short answer is no, you can’t prepay your rent, at least not anymore than one month anyway. If you need your savings to live then you’ll simply have to wait until they have become exhausted to file.

I have an unpleasant question that you need to think about: when the savings are gone, how are you going to pay your basic living expenses? Sooner or later you have to find a way to either have more money coming in or less money going out. I realize that you probably have creditors calling and bothering you, but frankly, this question is more important than dealing with the debt – you need to find a way to live after your savings are gone.